PKR trades 22 paisa lower against USD

August 03, 2021 (MLN): Enduring the losing momentum, Pakistani rupee (PKR) slid by 22 paisa against US Dollar (USD) in today's interbank session as the currency closed the day's trade at PKR 163.89 per USD.

The local unit was closed at PKR 163.67 per USD in yesterday’s session.

The continuous depreciation in home currency is owing to the market dynamics despite SBP’s intervention to curb disorderly conditions. Moreover, the expansionary monetary and fiscal policies have stimulated the demand in the economy, as Ali Khizar, Economist said.

While explaining his point of view, he stated that lower car prices and subdued interest resulted in record sales of automobile during the month of July’21 which has further deteriorated the exchange rate.

Meanwhile, the flow of remittances has slowed down after Eid festivities which would create unrest while offsetting import bills, he added.

The rupee witnessed a mild activity in intraday trade as it was traded in a range of 1.00 rupees per USD showing an intraday high bid of 164.50 and an intraday Low offer of 163.60.

Within the Open Market, PKR was traded at 164/164.70 per USD.

According to data gathered by Mettis Global, the local unit has depreciated by 3.87% or PKR 6.34 in the fiscal year-to-date against USD. Similarly, the rupee has weakened by 2.48% or PKR 4.05 in CY21 with the month-to-date (MTD) position showing a decline of 0.89%.

Meanwhile, the currency lost 9 paisa to the Pound Sterling as the day's closing quote stood at PKR 227.98 per GBP, while the previous session closed at PKR 227.89 per GBP.

Similarly, PKR's value weakened by 16 paisa against EUR which closed at PKR 194.73 at the interbank today.

On another note, within the money market, the State Bank of Pakistan (SBP) conducted an Open Market Operation in which it injected Rs.155 billion for 3 days at 7.15 percent.

The overnight repo rate towards close of the session was 7.20/7.40 percent, whereas the 1 week rate was 7.10/7.15 percent.

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